Debt

12 Months Ended

Dec. 31, 2023

Debt Disclosure [Abstract]

Debt

4. DEBT

As of December 31, 2023, outstanding debt balances totaled $100 million.

On September 15, 2023, we retired $150 million in senior notes that were originally issued in 2013 and paid interest semi-annually at the rate of 4.875 percent. Additionally, on September 15, 2023, we accessed $50 million from our revolving line of credit with PNC Bank, N.A. (PNC). The borrowing may be repaid at any time and carries a floating interest rate of 7.07 percent, which will reset during the first quarter of 2024. The credit facility with PNC was entered into during the first quarter of 2023 and replaced the previous $60 million facility with Bank of Montreal, Chicago Branch, which expired on March 27, 2023. The line of credit permits us to borrow up to an aggregate principal amount of $100 million, but may be increased up to an aggregate principal amount of $130 million under certain conditions. The facility has a three-year term that expires on May 29, 2026.

On November 10, 2023, we repaid $50 million that was borrowed from the Federal Home Loan Bank of Chicago (FHLBC) in 2021 and paid interest monthly at an annualized rate of 0.84 percent. Additionally, on November 10, 2023 we borrowed $50 million from the FHLBC. The borrowing matures on November 12, 2024 and monthly interest is paid at an annualized rate of 5.44 percent.

Due to the lack of marketability and short tenor of our borrowings, the fair value of our debt approximates the carrying value. We paid $9 million of interest on our debt in 2023, compared to $8 million in 2022 and $7 million in 2021. The average rate on debt was 4.07 percent in 2023, 3.89 percent in 2022 and 4.77 percent in 2021. The weighted average interest rate on debt outstanding was 6.26 percent as of December 31, 2023.